What Happens When I Stopped Being Self-Employed?

Maybe you received a full-time job or are just ready to stop your self-employed business. Whatever the case, if you stop being a sole trader, be sure to follow these HMRC rules.

Do I have to tell the HMRC if I stop being self-employed?

Yes. You must tell the HMRC when you stop being a sole trader. This is important to do because the HMRC will cancel your Class 2 National Insurance contributions. You must also cancel your VAT registration if you or your partnership had one.

How to tell HMRC your change of employment status

You can fill out this online form to tell the HMRC that you've stopped being self-employed.

What happens to my debts?

The HMRC says you're usually personally liable for your business debts even if your business is insolvent.

What happens to my tax returns when I stop being self-employed?

You are still required to send a Self Assessment tax return before the deadline. You must also figure out your:

• Trading income
• Total amount of allowable expenses, including mileage, phone and the costs of closing down your business
• Capital allowances
• Capital gains tax liability–if any
• Final profit or loss